Conoco Cutting Deepwater Spending

ConocoPhillips said on Thursday it will reduce future spending on deepwater drilling due to low crude oil prices while raising its dividend one cent.

The largest spending reductions will come in the Gulf of Mexico, where the Houston-based company said it will terminate a three-year contract for an Ensco deepwater drill ship that was due to be delivered late this year.

Conoco said it raised its quarterly dividend to 74 cents per share from 73 cents per share.